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Accounting Policies of Sofcom Systems Ltd. Company

Mar 31, 2015

These financial statements have been prepared to comply with the Generally Accepted Accounting Principles in India (Indian GAAP), including the Accounting Standard notified under the relevant provisions of the Companies Act, 2013. The financial statements are prepared on accrual basis under the historical cost convention.

All Assets and liabilities are classified as current or non current as per the Company's normal operating cycle and other criteria set out in Schedule III of the Act. Based on the nature of products and the time between the acquisition of assets for processing and their realisation in cash and cash equivalents, the company has ascertained its operating cycle as 12 month for the purpose of current- non current classification of assets and liabilities.

ii. USE OF ESTIMATES:

The preparation of financial statements in conformity with the GAAP requires estimates and assumptions to be made that affect the reported amounts of assets and liabilities on the date of the financial statements, the reported amounts of revenues and expenses during the reported period and the disclosures relating to contingent liabilities as of the date of the financial statements. Although these estimates are based on the management's best knowledge of current events and actions, uncertainty about these assumptions and estimates could result in outcomes different from the estimates. Difference between actual results and estimates are recognised in the period in which the results are known or materialise.

Appropriate changes in estimates are made as management becomes aware of changes in circumstances surrounding the estimates. Any revision to accounting estimates is recognised prospectively in the current and future periods.

ii. Revenue Recognition

The company follows the mercantile system of accounting and recognizes income and expenditure on accrual basis as a going concern.

iii. Investments

(i) Recognition and Measurement: Investments that are intended to be held for more than a year, from the date of acquisition, are classified as long-term investments and are carried at cost. However, provision for diminution in value of investments is made to recognise a decline, other than temporary, in the value of the investments.

(ii) Presentation and Disclosure: Investments which are readily realisable and intended to be held not more than one year from balance sheet date, are classified as current investments. All other investments are classified as non-current investments.

iv. Fixed Assets

Fixed Assets are stated at cost less depreciation. Cost of acquisition, fabrication or construction is inclusive of freight, duties and other incidental expenses during construction period.

v. Impairment

An asset is considered as impaired in accordance with Accounting Standard-28 on impairment of assets when at balance sheet date there are indications of impairment and the carrying amount of the asset exceeds its recoverable amount. The carrying amount is reduced to the recoverable amount and the reduction is recognized as an impairment loss in the Statement of profit and loss .

vi. Depreciation

Depreciation on Fixed Assets is provided to the extent of depreciable amount on the Straight Line Method (SLM). Depreciation is provided based on useful life of the assets as prescribed in Schedule II to the Companies Act,2013.

Depreciation on assets sold, discarded, demolished or scrapped, is provided upto the date on which the said asset is sold, discarded, demolished or scrapped.

vii. Inventories

The Closing stock is valued at lower of cost and net realisable value.

viii. Taxes on income

Current tax is determined as the amount of tax payable in respect of taxable income for the year. Deferred tax is recognised on timing differences, being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Where there is unabsorbed depreciation and carry forward losses, deferred tax assets are recognised only if there is virtual certainty of realisation of such assets. Other deferred tax assets are recognised only to the extent there is reasonable certainty of realisation in future.

ix. Foreign Currency Transaction

Transactions in foreign currencies are recorded at the rate prevalent on the date of transaction. However, Export/Imports remaining unrealised/unpaid till the finalisation of accounts are stated at the exchange rate prevailing at the end of the year.

x. Contingent Liabilities

Liabilities of contingent nature are not provided for in the books and are disclosed by way of notes on accounts.


Mar 31, 2014

I. Basis of Accounting

The financial statements are prepared under the historical cost convention on accrual basis and are generally in accordance with the requirements of the Companies Act, 1956. The accounting policies not specifically mentioned are consistent with generally accepted accounting principles.

All Assts and liabilities are classified as current or non current as per the Company''s normal operating cycle and other criteria set out in Schedule VI to the Act. Based on the nature of products and the time between the acquisition of assets for processing and their realisation in cash and cash equivalents, the company has ascertained its operating cycle as 12 month for the purpose of current-non current classification of assets and liabilities.

ii. Revenue Recognition

The company follows the mercantile system of accounting and recognizes income and expenditure on accrual basis as a going concern.

iii. Investments

The investments are stated at cost. Provision for diminution is made to recognise for decline, other than temporary in the nature of long term investments.

iv. Fixed Assets

Fixed Assets are stated at cost less depreciation. Cost of acquisition, fabrication or construction is inclusive of freight, duties and other incidental expenses during construction period.

v. Impairment

An asset is considered as impaired in accordance with Accounting Standard-28 on impairment of assets when at balance sheet date there are indications of impairment and the carrying amount of the asset exceeds its recoverable amount. The carrying amount is reduced to the recoverable amount and the reduction is recognized as an impairment loss in the Statement of profit and loss .

vi. Depreciation

The Company is providing depreciation on straight line method as per rates given in Schedule XIV of the Companies Act, 1956 on pro rata basis for the period of use.

vii. Inventories

The Closing stock is valued at lower of cost or net realisable value.

viii. Taxes on income

Current tax is determined as the amount of tax payable in respect of taxable income for the year. Deferred tax is recognised on timing differences, being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Where there is unabsorbed depreciation and carry forward losses, deferred tax assets are recognised only if there is virtual certainty of realisation of such assets. Other deferred tax assets are recognised only to the extent there is reasonable certainty of realisation in future.

ix. Foreign Currency Transaction

Transactions in foreign currencies are recorded at the rate prevalent on the date of transaction. However, Export/Imports remaining unrealised/unpaid till the finalisation of accounts are stated at the exchange rate prevailing at the end of the year.

x. Contingent Liabilities

Liabilities of contingent nature are not provided for in the books and are disclosed by way of notes on accounts.


Mar 31, 2013

I Basis of Accounting

The fincncial statements ore prepared under the historical cost convention on accrJal basis and cre generally in accordance with the requirements of the Companies Act, 1956. The accounting poilcies not specifically mentioned ore consistent with generally accepted accounting principles.

All Assts and liabilities are classified as current or non current as per the Company''s normal operating cycle and other criteria set out in Schedule VI to the Act. Based on the nature Of products and the time between the acquisition of assets for processing and their reolisotion in cash and cash equivalents, the company has ascertained its operating cycle as 12 month for the purpose of current- non current clossfication of assets and liabilities.

ii. Revenue Recognition

The company follows the mercantile system of accounting and recognizes income and expenditure on accrual basis as o going concern.

iii. Investments

The investments are slated at cost Provision for diminution is made to recognise for decline, other than temporary in tne nature at long term investments.

iv. Fixed Assets

Fixed Assets are stated ct cost less depreciation. Cost of acquisition. fabrication or construction is inclusive of freight, duties and other incidental expenses during construction period.

v. Impairment

An asset is considered as impaired in accordance with Accounting Stondard-28 or impairment of assets when at balance sheet dote there ore indications of impairment and the carrying amount of tine csset exceects its recoverable amount. The carrying amount is reduced to the recoverable amount and the reduction is recognized os an impairment loss in the Statement of profit and loss.

vi. Depreciation

The Company is providing depreciation on straight line method as per rates given in Scheoule XIV of the Companies Act, 1956 on pro rota basis for Ina period of use.

vii. Inventories

The stock has been valued at lower of cost or net realisable value.

viii. Taxes on Income

Current tax is aetermined as the amount of tax payable in respect of taxable income for the year. Deferred tax is recognised on timing differences, being the difference between taxaole income and accounting income that originate in one perioa and are capable of reversal in one or more subsequent periods. Wnere tnere is uncbsorbed depreciation and carry forward losses, deferred lax assets are recognised only if there is virtual certainty of reolisotion of such assets. Other deferred tax assets ore recognised only to the extert there is reasoncble certainty of realisation in future.

ix. Foreign Currency Transaction

Transactions in foreign currencies are recorded at the rote prevalent on the date of transaction. However. Export/lmports remaining unreclised/unaaid till the finolisalion of accounts are stated at the excrange rote prevailing at lbe end of the year.

x. Contingent Liabilities

Liabilities of contingent nature are not provided for in the books and are disclosea by way of rotes on accounts.


Mar 31, 2012

I. Basis of Accounting

The 'financial statements are prepared under the historical cost convention on accrual basis and are generally in accordance with the requirements of the Companies Act, 1956. The accounting policies not specifically mentioned are consistent with generally accepted accounting principles.

All Assts and liabilities are classified as current or non current as per the Company's normal operating cycle and other criteria set out in Schedule VI to the Act. Based on the nature of products and the time between the acquisition of assets for processing and their realisation in cash and cash equivalents, the company has ascertained its operating cycle os 12 month for the purpose of current- non current classification of assets and liabilities.

ii. Revenue Recognition

The company follows the mercantile system of accounting and recognizes income and expenditure on accrual basis as a going concern.

iii. Investments

The investments are stated at cost. Provision for diminution is mode to recognise for decline, other than temporary in the nature of long term investments.

iv. Fixed Assets

.Fixed Assets are stated at cost less depreciation. Cost of acquisition, fabrication or construction is inclusive of freight, duties and other incidental expenses during construction period.

v. Impairment

An asset is considered as impaired in accordance with Accounting Standard-28 on impairment of assets when at balance sheet date there are indications of impairment and the carrying amount of the asset exceeds its recoverable amount. The carrying amount is reduced to the recoverable amount and the reduction is recognized as an impairment loss in the Statement of profit and loss.

vi. Depreciation

The Company is providing depreciation on straight line method as per rates given in Schedule XIV of the Companies Act. 1956 on pro rate basis for the period of use.

vii. Inventories

The stock has been valued at lower of cost or net realisable value.

viii. Taxes on income

Current tax is determined as the amount of tax payable in respect of taxable income for the year. Deferred tax is recognised on timing differences, being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Where there is unabsorbed depreciation and cany forward losses, deferred fax assets are recognised only it there is virtual certainty of realisation of such assets. Other deferred tax assets are recognised only to the extent there is reasonable certainty of realisation in future.

ix. Foreign Currency Transaction

Transactions in foreign currencies are recorded at the rate prevalent on the date of transaction. However. Export/lmports remaining unrealised/unpard till the finalisation of accounts are stated of the exchange rate prevailing at the end of the year,

x. Contingent liabilities

Liabilities of contingent nature are not provided for in the books and are disclosed by way of notes on




Mar 31, 2011

I. Notes 0f Accounting

The financial statements are prepared under the historical cost convention on accrual basis and are generally fri accordance with the requirements of the Companies Act. 1956. The accounting policies not specifically mentioned are consistent with generally accepted accounling principles

ii. Revenue Recognition

The company follows the mercanlite system 01 accounting and recognizes income and expenditure on accrual basis as a going concern.

iii. Investments

The inveslinents are staled al. cost. Provision for diminution is made to recognise for decline, other than temporary in The nature of long term investments.

iv. Fixed Assets

Fixed Assets are stated at cost less depreciation. Cost of acquisition, fabrication or construction is inclusive of freight, duties and other incidental expenses during construction period.

v. Impairment

An assel is considered as impaired in accordance with Accounling Stondard-28 on imperilment of assets when at balance sheet dale there are indications of impairment and the carrying amount of the asset exceeds its recoverable amount. ,The carrying amount is reduced to the recoverable amount and the reduction is recogniied as an impairment loss in the profit and loss account.

vi. Depreciation

The Cpmpany is providing depreciation on straight line methed os per rates given in Schedule XlV of the Companies Act, 1956 on pro rata basis for the period of use.

vii. Inventories

The stock has been valued at lower of cost or not reollsoble value.

vii. Taxes on income

Current lax is determined as the amount of tax payable in respect of taxable income for the year. Deterred fox is recognised on liming differences, being !he difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Where there is unabsorbed depreciation and carry forward losses, deferred lox assets are recognised only If there Is virtual certainty of realisalion of such assets. Other deferred tax assets are recognised only to the extent there'' is reasonable certainly of realisation in future.

ix. Foreign Currency Transoclion

Transactions in foreign currencies are recorded at the rate prevalent on the date of fransocfion. However. Export/Imports remaining unrealised/unpaid fill Ine finalisation at accounts Ore stated at the exchange rote prevailing ol the end of the year.

x. Contingent Liabilities

Liabilities of contingent nature are not provided for in the books and are disclosed by way of notes on accounts.

 
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